AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Summary
- International Business Machines is exploring to sell its IBM Watson Health unit, according to media sources.
- The technology behemoth believes that this move will help faster-growing cloud computing operations of the Company.
- However, IBM is currently studying alternatives for the sale of its Watson Health business.
According to some media sources, New York-headquartered International Business Machines Corporation (NYSE:IBM) is searching for a potential buyer to sell its IBM Watson Health unit. The move could potentially help IBM’s newly appointed CEO, Arvind Krishna, focus on faster-growing cloud computing operations and become more competitive in this space.
As per these sources, there are several alternatives the Company can explore – from the merging the unit with another Company to selling it to a private equity firm.
Source: © Michaelvi | Megapixl.com
IBM Watson Health employs artificial intelligence (AI) to help health care providers, including insurers, drug makers and hospitals, to manage their data. It is believed that Watson has roughly US$1 billion in annual revenue and is not a unit that generates profit. So far, it is unclear how much the business might bring in a sale or if its sale will take place at all.
IBM Watson Health’s key brands include-
- Merge Healthcare, which analyses MRIs and mammograms.
- Phytel assists with patient communications.
- Truven Health Analytics that helps in the analysis of the complex healthcare data.
What happened to IBM Watson Health?
US IBM embarked on Watson Health with high ambitions, including revolutionising health care for cancer patients. IBM believes that many of its aspirations have not come true.
Source: Copyright © 2021 Kalkine Media Pty Ltd.
Moreover, the technology behemoth also said that some customers have complained that the products did not meet the Company’s hype.
Whether IBM takes a call to dissociate itself with IBM Watson remains to be seen. The Health unit remains active and was recently in the news regarding a collaborative agreement with NYSE-listed Humana Inc.
On 18 February 2021, IBM shares closed the day’s trade at US$120.73, up by 0.63%. IBM has a market capitalisation of almost US$107.57 billion.
